ETFS Physical Platinum Shares (NYSEMKT:PPLT)

toaoyoda (< 20) Submitted: 2/10/2012 3:25:42 PM : Start Price: $163.47 PPLT Score: -35.62

Comparing raw platinum to raw gold reveals that the former is less expensive than the latter, a circumstance relatively rare in history. It is, of course, due to gold being considered money ( albeit not by Bernanke ) in many quarters. On the other hand, platinum is used up in industrial applications ( not least of all in automotive catalytic converters ) and gold is essentially permanent. While it is claimed the "peak gold"has been reached, platinum is harder and more costly to extract and the main supplies are in unstable places like Africa. The price of platinum is getting close to the cost of production at which point money-losingmines will be mothballed and the price of the metal will have to rise. At the same time, platinum has traditionally been regarded as an alternative ( usually pricier ) to gold in jewelry and the monetary aspect of gold may be expected to predominate in the foreseeable future.